Objective of this analysis are to study how to separate water suspended in base oil by liquid-liquid extraction, to study the effect of various parameters in the extraction process, to explain properties of the solvent and its function in extraction of water from base oil and try to save time and cost in extracting water out of base oil. The most important equipment required for this research is the liquid-liquid extraction column based on standard function of the Scheibel system. Research results are as follows. Water can be extracted from base oil by using the solvent Polyethylene glycol (PEG) 300 which reduces water volume in base oil from 3678 ppmto 30 ppm (steady state). It was also found that there is a relationship in approaching the steady state of the system among flow rate of the solvent, flow rate of base oil with suspended water, motor speed, and time used for the solvent to contact the water-oil solution as well as surface area. The higher the flow rate of base oil, the higher the volume of water in the base oil. When flow rate of the solvent, motor speed and contact time were increased, water volume in the base oil decreased until the system approached steady. Various combination of the above parameters were tested, but there was no effect on the steady state. The research also found that the optimum conditions to achieve the steady state are a ratio of flow rate of solvent to flow rate of base oil of 1 : 2 and a motor speed of 500 rpm.